{"id":92701,"date":"2025-12-27T14:02:15","date_gmt":"2025-12-27T11:02:15","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=92701"},"modified":"2025-12-27T14:05:16","modified_gmt":"2025-12-27T11:05:16","slug":"mike-novogratz-warns-of-risks-for-xrp-and-cardano","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/mike-novogratz-warns-of-risks-for-xrp-and-cardano\/","title":{"rendered":"Mike Novogratz Warns of Risks for XRP and Cardano"},"content":{"rendered":"<p>Tokens like XRP from <a href=\"https:\/\/forklog.com\/en\/news\/what-are-ripple-and-the-cryptocurrency-xrp\">Ripple <\/a>and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-cardano-ada\">Cardano<\/a> (ADA) must demonstrate their real utility, or they risk losing to more successful competitors, according to Galaxy Digital CEO Mike Novogratz.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"2026 is a Year for Building with Mike Novogratz\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/xYiOPz3zobk?start=795&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div>\n<\/figure>\n<p>In a conversation with Head of Research Alex Thorn, the company head noted that the crypto market is shifting from &#8220;narrative-based tokens&#8221; to those with a business foundation.<\/p>\n<p>With each market cycle, investors have more options, making it harder to maintain community engagement. Tokens that survive solely due to a loyal user base will lose out to those that generate profit and provide measurable value, Novogratz emphasized.<\/p>\n<p>In his view, likely winners will be Bitcoin, which has already established itself as money, and protocol coins that truly become platforms for building businesses.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Charles Hoskinson, bless him, has maintained the Cardano community despite the blockchain not being widely used. They have a strong community, as does XRP. Can they maintain it as more and more options appear?&#8221; Novogratz pondered.<\/p>\n<\/blockquote>\n<p>He cited the token <a href=\"https:\/\/forklog.com\/en\/news\/the-price-of-popularity-and-a-lesson-for-all-hyperliquid\">Hyperliquid<\/a> as an example of an asset with obvious value. The exchange directs 98% of profits to buy back and burn HYPE, which acts as an investment similar to stocks.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;I believe this is the future of tokens. You&#8217;ll see good coins trade successfully, just like quality real assets,&#8221; said the Galaxy co-founder.<\/p>\n<\/blockquote>\n<p>Novogratz predicts that the industry will undergo a transformation over the next one to three years. During this period, crypto exchanges and wallets will evolve into neobanks offering <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a>, <a href=\"https:\/\/forklog.com\/en\/news\/what-are-rwas-real-world-assets\">tokenized stocks<\/a>, and money market products.<\/p>\n<p>In September, the entrepreneur admitted that he <a href=\"https:\/\/forklog.com\/en\/news\/mike-novogratz-admits-to-underestimating-xrp\">underestimated the resilience<\/a> of XRP \u2014 he did not expect the token to survive the lawsuit by the U.S. Securities and Exchange Commission against Ripple. The litigation lasted <a href=\"https:\/\/forklog.com\/en\/news\/us-court-finalizes-secs-case-closure-against-ripple\">more than four years<\/a>.<\/p>\n<p>However, questions regarding the real application of the token from the California fintech company in the industry are raised regularly.<\/p>\n<p>In November, doubts about XRP&#8217;s utility were expressed by VanEck&#8217;s Head of Digital Asset Research Matthew Sigel and The Wolf Of All Streets podcast host Scott Melker. At that time, <a href=\"https:\/\/forklog.com\/en\/news\/david-schwartz-to-step-down-as-ripples-cto\">Ripple&#8217;s CTO<\/a> David Schwartz confirmed that the token&#8217;s concept does not provide for passive income. XAO DAO co-founder Santiago Velez clarified that the asset&#8217;s primary function is to serve as a neutral intermediary currency for settlements.<\/p>\n<p>On November 13, the U.S. <a href=\"https:\/\/forklog.com\/en\/news\/canary-capital-launches-spot-xrp-etf\">saw the launch<\/a> of a spot <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-cryptocurrency-etf\">ETF<\/a> based on XRP from Canary Capital. The debut session&#8217;s turnover of $58 million <a href=\"https:\/\/forklog.com\/en\/news\/spot-bitcoin-etfs-post-870m-in-second-biggest-outflow\">was the best<\/a> among all exchange-traded funds launched this year. After the launch, the products did not record <a href=\"https:\/\/forklog.com\/en\/news\/xrp-etfs-continue-positive-streak-amid-bitcoin-outflows\">a single week of fund outflows<\/a>, unlike market leaders based on Bitcoin and Ethereum.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"357\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-598629f24f2b0505-2049104094103765-1024x357.jpeg\" alt=\"image\" class=\"wp-image-272640\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-598629f24f2b0505-2049104094103765-1024x357.jpeg 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-598629f24f2b0505-2049104094103765-300x105.jpeg 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-598629f24f2b0505-2049104094103765-768x268.jpeg 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-598629f24f2b0505-2049104094103765-1536x535.jpeg 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-598629f24f2b0505-2049104094103765.jpeg 1570w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/sosovalue.com\/assets\/etf\/Total_Crypto_XRP_ETF_Fund_Flow?page=usXRP\">SoSoValue<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Analysts Do Not Bet on Rapid XRP Growth<\/h2>\n<p>Ripple&#8217;s token prices are expected to continue consolidating in the new year, with the strengthening of the upward trend depending on additional catalysts, according to experts surveyed by <a href=\"https:\/\/cointelegraph.com\/news\/xrp-price-sideways-bullish-catalyst-crypto-analysts\">Cointelegraph<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;We still believe that the second half of 2026 will provide more favorable conditions for risk assets in general. In the short term, we see a bearish sentiment towards altcoins until BTC consolidates or forms a bottom,&#8221; said Nansen Senior Analyst Jake Kennis.<\/p>\n<\/blockquote>\n<p>He refrained from predicting specific price levels for XRP but highlighted several positive factors for the coin:<\/p>\n<ul class=\"wp-block-list\">\n<li>approval of spot ETFs;<\/li>\n<li>integration with global payment systems;<\/li>\n<li>increased efforts to transform the token into a &#8220;liquid intermediary asset.&#8221;<\/li>\n<\/ul>\n<p>CEO of Posidonia21 Capital Partners Jesus Perez also suggested a sideways trend for XRP at the start of the year.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Growth potential is likely to depend more on the resilience of the narrative and market sentiment than on fundamental transformations,&#8221; he added.<\/p>\n<\/blockquote>\n<p>A potential driver could be the introduction of <a href=\"https:\/\/forklog.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">staking<\/a>. However, <a href=\"https:\/\/forklog.com\/en\/news\/ripple-considers-native-xrp-staking-implementation\">discussion of the mechanism<\/a> for additional income in XRP is still at an early stage, Perez noted.<\/p>\n<p>Back in the day, on-chain sleuth ZachXBT <a href=\"https:\/\/forklog.com\/en\/news\/zachxbt-labels-ripple-cardano-and-hedera-as-insider-enrichment-schemes\">compared<\/a> the operational models of Ripple, Cardano, and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-hedera-hashgraph-hbar\">Hedera<\/a> to financial pyramids.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tokens like XRP from Ripple and Cardano (ADA) must demonstrate their real utility, or they risk losing to more successful competitors, according to Galaxy Digital CEO Mike Novogratz.<\/p>\n","protected":false},"author":1,"featured_media":92702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Tokens like XRP and Cardano must prove their utility or risk losing to competitors, says Novogratz.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1401,1146,1303,1138,112],"class_list":["post-92701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cardano-ada","tag-cryptocurrency-market-forecasts","tag-mike-novogratz","tag-opinions","tag-ripple"],"aioseo_notices":[],"amp_enabled":true,"views":"312","promo_type":"1","layout_type":"1","short_excerpt":"Tokens like XRP and Cardano must prove their utility or risk losing to competitors, says Novogratz.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=92701"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92701\/revisions"}],"predecessor-version":[{"id":92703,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92701\/revisions\/92703"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/92702"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=92701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=92701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=92701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}